The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefile, has announced that President Muhammadu Buhari has approved a 10-day extension from the original deadline of January 31st, 2023, to February 10th, 2023, to allow Nigerians who still have old naira notes to deposit them with their banks. He also revealed that a total of N900 billion is still in people’s possession.
The apex bank announced a seven-day grace period, starting from February 10 to February 17, 2023 to allow Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have ceased to be Legal tender, in compliance with Sections 20(3) and 22 of the CBN Act.
Announcing the extension, Mr. Emefiele said, “A 10-day extension of the deadline from January 31, 2023, to February 10, 2023, to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes out- side the CBN lose their legal tender status.
“Our CBN staff currently on mass mobilisation and monitoring together with of- ficials of the EFCC and ICPC will work together to achieve these objectives.
There will be a seven-day grace period, beginning on February 10 to February 17,2023, in compliance with Sections 20 (3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old cur- rency would have lost its le- gal tender status.”
He added: “Aside from those holding illicit/stolen naira in their homes for speculative purposes, we do aim to give all Nigerians that have naira legitimately earned and trapped the op- portunity to deposit their le- gitimately trapped monies at the CBN for exchange.”
He appealed to all Nigeri- ans to work with the Central Bank of Nigeria to ensure a hitch-free process for the implementation of this very important programme.
Giving a score of the exercise, Mr Emefiele said, “so far and since the commence- ment of this programme, we have collected about N1.9 trillion; leaving us with about N900 billion.
To achieve effective distribution of the new notes, Mr Emefiele pointed out that the CBN took many steps such as holding several meetings with Deposit Money Banks (DMBS) and providing them with Guidance Notes on processes they must adopt in the collection of old notes and distribution of the new notes to all Nigerians.
He said, “This includes specific directives to DMBs to load new notes into their ATMs na- tionwide to ensure an equita- ble/transparent mechanism for the distribution of the new notes to all Nigerians.
“We commenced a nationwide sensitisation through the print and electronic media to create an awareness on the redesigned notes to Nigerians, including collaboration with the National Orientation Agency to reach all Nigerians across multiple channels.
“We deployed 30,000 super agents nationwide to assist in our cash swap initiative in the hinterlands, rural areas, and regions underserved by banks in the country to ensure that the weak and vulnerable ones amongst us can swap/ exchange their old notes.
“We deployed all our staff, particularly the assistant directors, deputy directors and directors in Abuja to proceed to all CBN branches Nationwide to join the mass mobilisation campaign and monitoring programmes, working with the deposit money banks, agents and our branch controllers across the 36 states of the Federation.
“This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the programme.
“Although we have received some reports of breaches by some bank branches, we have agreed with executive chairmen of the EFCC and ICPC to assist us by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implemen- tation of these guidelines.”
The CBN Governor reiter- ated that the aim is to en- sure compliance with the laid down guidelines, noting that “we are happy that so far, the exercise has achieved a suc- cess rate of over 75 percent of the N2.7 trillion held outside the banking system.”
He added that Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the agent naira swap initia- tive as well as the CBN Senior staff nationwide sensitisation team exercise.
Reiterating the reasons behind the naira redesign programme, Emefiele said the aim is to make the monetary policy decisions more efficacious and that already inflation had started trending downwards and exchange rates relatively stabilised.
Also, the measure, he explained, aims at supporting the efforts of the security agencies in combating banditry and ransom taking in Nigeria, and that the military are making good progress in this important task in the country.
He noted: “Available data at the Central Bank of Nigeria has shown that in 2015, Cur- rency-in-Circulation was only N1.4 trillion. As at October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the banking industry and N2.7 trillion, held permanently in people’s homes.
“Ordinarily, when CBN re- leases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of cur- rency in circulation under the firm control of the CBN.”
He thanked President Buhari for giving the CBN the approval to embark on the programme, stressing that “the Central Bank of Nigeria hasn’t had the opportunity to embark on such currency redesign programme in last 19 years and indeed, let me emphasise that only an incor- ruptible leader of the presi- dent’s stature can give such approval to the CBN.”